mecㆍviewer v1.5 :: 3. RFP.pdf

Korea  Aerospace  Research  Institute  (KARI)  is  a  government  funded  research  institute,  engaged
not  only  in  developing  aerospace-related  technologies,  but  also  in  supporting  a  national
aerospace development policy.

KARI  is  performing  the  KSLV-III  Development  Program  and  as  a  part  of  this  Development
Program,  KARI  is  desirous  of  procurement  of  the  Friction  Stir  Welding  (FSW)  Machine  for  the
Dome fabrication of the KSLV-III 1st stage Propellant Tank.

This  RFP  (Request  for  Proposal)  explains  the  procedures  to  be  taken  by  the  Bidders  seeking  to
respond to the RFP.

This RFP  also details the  requirements  and terms and conditions for the  procurement  of  the  Dome
Friction  Stir  Welding  (FSW)  Machine  for  the  KSLV-III  Propellant  Tank.  This  RFP  consists  of  the
following documents;

(1) General Instruction to Bidders
(2) Appendix A. General Terms and Conditions
(3) Appendix B. Technical Specifications and Statement of Work

Bidders are requested to submit the Proposal in accordance with the guidelines and instructions
as contained in the RFP.

Bidders’  Proposals  shall  include  all  data  and/or  information  as  requested  by  this  RFP  and  all
attachments  hereto.  All  information  contained  in  this  RFP  shall  be  treated  as  proprietary  and
confidential.

2. Qualification of Bidder

Bidder’s qualification for this bidding is as follows;

(1) Bidder shall have specialized knowledge and technology on the Friction Stir Welding (FSW)

Machine for the Dome fabrication of the launch vehicle Propellant Tank and first-hand
experience in designing, manufacturing, integrating and testing of the Friction Stir Welding (FSW)
Machine specified in this RFP.

(2) Bidder shall be in possession of all the necessary licenses, in effect as of Bid Closing Date, required

for the development of the Friction Stir Welding (FSW) Machine for the Dome fabrication of
the launch vehicle Propellant Tank as described in this RFP.

(3) Bidder shall have a successful track record of delivering Friction Stir Welding (FSW) Machine for

the Dome fabrication of the launch vehicle Propellant Tank.

(4) Bidder shall complete the design, manufacturing, delivery, installation and final acceptance of the

Friction Stir Welding (FSW) Machine for the Dome fabrication of the launch vehicle
Propellant Tank in this RFP within nineteen (19) months at latest. If Bidder may shorten this
period, a higher score is given in the technical evaluation.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

(5) Bidder should be continuously available for supporting KARI’s operation and maintenance of the

Friction Stir Welding (FSW) Machine for the Dome fabrication of the launch vehicle
Propellant Tank.

※ The qualification of the Bidder is at Evaluation Committee’s own discretion.

3. Bid Closing Date

Proposal is due February 2, 2024 at 15:00PM. If any part of the Proposal or bid bond as required under
this RFP is submitted after the stipulated closing time as above, the entire Proposal will be rejected.

4. Submission of Proposal

The Proposal shall be hand-carried or delivered using registered mail service to the following KARI
personnel or his designee:

Mr. Won-Suk LEE
Head of Overseas Contracts Office

Korea Aerospace Research Institute (KARI)
169-84 Gwahak-Ro, Yuseong-Gu
Daejeon, 34133, Korea

Tel : +82-42-860-2406
Fax : +82-42-879-4370
e-mail : wsl@kari.re.kr

The communication between KARI and each Bidder for contractual matters (Terms and Conditions)
shall be controlled through the following designee:

Ms. Ye-Seul KIM
Senior Administrator of Overseas Contracts Office

Korea Aerospace Research Institute (KARI)
169-84 Gwahak-Ro, Yuseong-Gu
Daejeon, 34133, Korea

Tel : +82-42-860-2613
Fax : +82-42-879-4370
e-mail : yeseulkim@kari.re.kr

In addition to the Proposal submission as above, the point of contact for all communications for
technical matters shall be

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Mr.  Mincheol  Shin
Senior  Researcher
Launch  Vehicle  Technology  Research  Division  #1

Korea  Aerospace  Research  Institute  (KARI)
169-84  Gwahak-Ro,  Yuseong-Gu
Daejeon,  34133,  Korea

Tel  :  +82-42-860-2951
e-mail  :  mcshin@kari.re.kr

with C.C to

Mr. Joontae Yoo
Principal Researcher
Launch Vehicle Technology Research Division #1

Korea Aerospace Research Institute (KARI)
169-84 Gwahak-Ro, Yuseong-Gu
Daejeon, 34133, Korea

Tel: +82-42-860-2928
e-mail : jtyoo@kari.re.kr

Bidder shall specify in its Proposal, its single point of contact for KARI to communicate in conjunction
with the RFP, Proposal, subsequent evaluation, etc. Bidder’s information on the point of contact shall
include the name, title/position, telephone no., facsimile no., and e-mail address.

Bidders are strictly requested to submit Proposals to KARI as follows:

(1) Technical Proposal (including the commercial part): one (1) original and six (6) copies
(2) Price Proposal: two (2) originals
※  The Price Proposal shall be sealed and be submitted in a separate envelope.
※  Two  (2)  sets  of  Electronic  files  (preferably  in  PDF  format)  of  the  Proposal  shall  be  additionally

submitted in the form of CD-ROM or memory stick.

The Technical Proposal consists of two (2) Volumes as follows;
(1) Volume 1: Heritage and Experience
(2) Volume 2: Technical Part

And Price Proposal is specified as the Volume 3

In the Volume 1, the Bidders shall describe following contents;

(1) Company general information such as organization, financial status, etc.,

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

(2) The heritages of manufacturing and delivery of the Friction Stir Welding (FSW) Machine,
(3) The specialized knowledge and technology on the Friction Stir Welding (FSW) Machine,
(4) The information of the point of contact including the name, the title, telephone number, fax number,

and e-mail address, and

(5) Export license statement for the Friction Stir Welding (FSW) Machine.

In  the  Volume  2,  the  Bidders  shall  include  the  descriptions  for  the  main  terminologies  and  basic
construction of the Volume 2 is as follows;

(1) Review and opinion about the specifications requirements indicated by KARI,
(2) The detailed description of functions and specifications,
(3) Qualification of each part, materials, and equipment,
(4) Qualification Management,
(5) Delivery plan of items and installation plan,
(6) Detailed contents and time schedule of Pre-Acceptance Test and Final Acceptance Test,
(7) Detailed method of warranty and performance
(8) Contents & plan of warranty
(9) Training plan for operation and maintenance
(10) Contents of technical support, and warranty and maintenance plan

In the Volume 3, the Bidders shall provide total bid value with the itemized price list and the price of
the system shall be broken down.

5. Bid Schedule

The following schedule is a tentative milestone for the eventual Contract and may be changed at KARI’s
sole discretion:

(1) RFP Release: T0
(2) Bid Closing Date: February 2, 2024 (T1)
(3) Review of Proposal, Q&A, Evaluation and Expected Date of Contract: T2 = T1 + 1 Week
(4) Expected Contract: T3 = T2 + 1 Week

6. Validity of Proposal

Proposal shall be valid for three (3) months from the Bid Closing Date. It can be extended up to six (6)
months with KARI’s written notice.

7. Price Requirements

The price or rate proposed by Bidder shall be Firm and Fixed Price that is not subject to any price
escalation, price change or increase of actual costs during the Contract period.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Any  kinds  of  taxes  and  duties  arising  in  connection  with  Bidder’s  work  under  the  eventual  Contract
shall be Bidder’s responsibility, except for the customs duties and VAT on the Deliverable Items and the
VAT on the Service after delivery of Deliverable Items levied in Korea and the price proposed by Bidder
shall be in accordance with Table 1 as below.

Considering  the  participation  of  domestic  bidder  in  this  bidding,  the  price  proposal  of  a  domestic
bidder shall include all costs including price of Deliverable items, Service cost, Shipment cost, customs
duties and value added tax. The price proposal of an overseas bidder shall be proposed in accordance
with Table 1. “Bid Quotation Form for Overseas Supplied Goods”. In the event that the price proposal
of an overseas bidder has not been quoted in accordance with Table 1 as below, the  bidder shall be
liable  for  any  losses  arising  from  its  submission  of  price  proposal  that  do  not  satisfy  any  of  the
requirements set forth in this Section

Table 1. Bid Quotation Form for Overseas Supplied Goods

Item

no.

Description

Price

Deliverable

Items

Friction Stir Welding (FSW) Machine

Welding software and license keys for

welding processes, if available, including

license fee. (submitted on USB)

Deliverable Data listed in PART 2 “Technical

Specifications and Statement of Work”

Shipment Cost outside Korea

Sub-sum (A) : The CIP Price for the Deliverable Items

Shipment Cost inside Korea

Service Cost in Korea after delivery of Deliverable Items

Sub-sum (B)

Total Price (Sub-sum (A) + Sub-sum (B))

[Note1] Considering the delivery rule of DPU in the Contract, Shipment Costs (Item no. 4 and 5) and

Service Cost (Item no. 6) shall be proposed.

[Note2] Shipment Cost outside Korea means all costs incurred by the bidder in relation to the delivery

of Deliverable Items prior to customs clearance in Korea under the DPU, Incoterms 2020. (i.e.
packing, inland transportation in export country, storage fee, overseas freight, insurance, etc.)

[Note3] Shipment Cost inside Korea means all costs incurred by the bidder in relation to the delivery of

Deliverable Items after customs clearance in Korea under the DPU, Incoterms 2020. (i.e. inland
transportation in Korea, storage fee, unloading fee, etc.)

[Note4] Service Cost refers to all costs incurred after delivery of Deliverable items. Service Cost shall

include installation fee, training, warranty and etc. after delivery of Deliverable items.

[Note5] For comparison and evaluation with the price proposed by domestic bidder and overseas

bidder, KARI will add the sum of the customs duties and value added tax in Korea to the price
proposed  by  overseas  bidder  and  evaluate  the  whole  price  (the  sum  of  proposed  price,  the
customs duties and value added tax  in Korea).  For the  calculation and evaluation of customs
duties  and  value  added  tax,  bidder  shall  provide  the  CIP  price  for  Deliverable  Items  (Please
refer to the Sub-sum (A)). Please refer to the Section 13. “Evaluation of Proposal” for the more
detailed information on the price evaluation.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

The currency quoted in the Price Proposal shall be expressed in EUR however, other currency may be
allowed instead. If Bidder’s proposed price is in a currency other than EUR, for the conversion of the
Bidder’s proposed price, the 1st basic exchange rate announced by KEB Hana Bank on the price
evaluation date shall be used in the price evaluation. Likewise, the currency of the Contract may be the
national currency of Contractor within the estimated budget of this Bidding, if necessary. In such a case,
the 1st basic exchange rate noticed by KEB Hana Bank of Korea on the price evaluation date shall be
applied for the exchange rate for currency change.

8. Bid Bond

Bidder  shall  establish  a  bid  bond  in  favor  of  KARI  no  later  than  the  Bid  Closing  Date  and  submit  a
certificate  to  KARI  along  with  its  Proposal.  The  total  amount  of  the  bid  bond  shall  be  at  least  five
percent  (5%)  of  the  total  bid  price.  The  bond  shall  remain  valid  for  three  (3)  months  after  the  Bid
Closing Date and if the Bid validity is extended as per Section 6, the bid bond shall also be extended
accordingly.  The  bid  bond  shall  be  in  the  form  of  a  surety  bond  issued  by  the  Seoul  Guarantee
Insurance  Company, in the form of an irrevocable  standby letter of credit or bank  guarantee by first
class international bank, cash or other means of guarantee acceptable to KARI. In case of a surety bond,
it shall be advised through “Seoul Guarantee Insurance Company”. In case of cash, bank guarantee, or
the irrevocable standby letter of credit, it shall be advised through “Woori Bank” (Daejeon Branch at 29
Munye-ro, Seo-gu, Daejeon, 35241 Korea, Tel:+82-42-488-9704 (Ext.312), Fax: +82-505-003-0759). The
bond shall be available by KARI’s request on the Seoul Guarantee Insurance Company or by KARI’s draft
at sight drawn on the bank, accompanied by the statement of KARI stating that;

(a)  Bidder  has  refused  to  enter  into  a  Contract  with  the  terms  and  conditions  in  the  Request  for

Proposal, if any,

(b) Bidder has hindered the fair bidding by fraud or misrepresentation, or
(c) Bidder has withdrawn its Proposal after the Bid Closing Date.

The  bid  bond  shall  contain  the  substantial  part  of  the  terms  and  conditions  of  the  bond,  date  of
establishment,  account,  amount,  payment  terms,  and  date  of  expiry,  etc.  When  the  Contract  is
executed  with  Successful  Bidder,  the  bid  bond  of  Successful  Bidder  shall  be  amended  to  the
performance bond of ten percent (10%) of the total Contract Price under the Contract as part thereof
in accordance with the terms and conditions of the Contract.

The bid bonds except for that of the Successful Bidder will be released, upon the instructions of KARI,
to unsuccessful Bidders, without interest, promptly after execution of the Contract between KARI and
Successful  Bidder.  The  bid  bond  of  the  Successful  Bidder  shall  be  likewise  released  only  when  KARI
decides not to enter into a Contract after the selection of the Successful Bidder.

The bid bond is a critical requirement by Korean government regulation. Therefore, if any Bidder does
not submit the bid bond then, such Bidder will be disqualified.

9. Questions and Modifications

Any questions as to the intent and clarity of this RFP may be submitted in writing to KARI’s designees
as specified in Section 4 “Submission of Proposal” by e-mail, fax or letter no later than five (5) days
before the Bid Closing Date.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

After the Bid Closing Date, Bidder shall not amend, modify, or supplement the Proposal, or submit any
other documents to KARI, except on KARI's written request.

KARI may ask each Bidder in writing for clarifications, amendments, revisions, or supplementation of
the Proposal and any other documents submitted by Bidder at  any time  before the execution of the
Contract.  KARI  may  also  ask  each  Bidder  to  submit  and  file  additional  information  or  documents
necessary for evaluation of the Proposal.

10. No Contractual Obligation

This  RFP  shall  not  be  interpreted  as  an  offer  for  a  Contract  or  any  type  of  guarantee  by  KARI.  It  is
KARI's sole  discretion  whether  or  not  to  allow  the  Contract  award  to  any  Bidder.  KARI  owes  no
responsibility or obligation to select the Contractor among Bidders.

This  RFP  shall  neither  be  construed  to  create  an  obligation  on  KARI  to  enter  into  a  contractual
instrument,  nor  shall  it  serve  as  a  basis  for  any  claim  for  reimbursement  of  costs  for  the  effort  to
prepare,  submit, amend, revise or supplement the Proposal, and other related documents expended
by the Bidder regardless of whether or not the Bidder is successful in receiving an award as a result of
the solicitation.

11. Acceptance and Rejection of Bids

KARI reserves the right to accept or reject this Bidding, and to amend the Bidding process at any time
prior to the award of the Contract without thereby incurring any liability to the affected Bidder(s), and
KARI is not under any obligation to inform the affected Bidder(s) of the ground for its action.

12. Withdrawal of Proposal

Bidder may withdraw its Proposal at any time before the Bid Closing Date. Withdrawal shall be made in
writing, and shall be received by KARI before the Bid Closing Date.

13. Evaluation of Proposal

The evaluation of the Proposals will be made by the KARI evaluation committee and the
following evaluation process is for information only. The evaluation committee reserves the right
to modify the evaluation process and criteria without any prior notification to Bidders.

During the Bid evaluation, KARI may send to Bidders a set of questions for clarification and request any
supplement to the Proposals and the evaluation will be made based on the Proposal, the answers and
the supplement received from Bidders.

The evaluation consists of two (2) steps of the technical part and bidding price part and, after the

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

evaluation of technical part, the evaluation committee will select the Qualified Bidders and perform
the bidding price evaluation for the selected Qualified Bidders. The total technical evaluation score is
one hundred (100) points and Bidders, who get score exceeding eighty-five (85) points in technical part,
will be selected as Qualified Bidders. And then, the Qualified Bidder, who proposes the lowest price
under budget price among the Qualified Bidders, will be selected as the Successful Bidder.

The table 2 represents the evaluation factors and score for the technical part.

Table 2. Itemized list for technical evaluation.

Major

Classification

Detail Classification

Points Remark

Expertise and
Development

Capability

(25)

Expertise and experiences in designing,
manufacturing, installing and successful operation
of the FSW machine for producing the dome of the
propellant tank

Manufacturing and delivery schedule

Machine

Performance

(30)

Stroke capacity of machine & turn table for the
dome welding (3.8~4.2m diameter dome)

Weldability for AL2219 material and 4~10mm
thickness.

Tool applicability of Conventional FSW and
retractable pin tool

Machine
Function

(25)

Milling function at both ends of dome skin

Automatic control function of the welding variables
and data recording during welding

Functionality and layout for side flange welding

Test plan and

Warranty

(20)

The plan for Pre & Final acceptance test and
appropriate training course

Warranty policy and maintenance plan

Total

100

The  bid  prices  submitted  by  the  Bidders  shall  be  compared  and  evaluated  by  converting  the  bid  prices,
being  the  sum  of  the  prices  for  all  items  (including  any  and  all  parts  and  components)  and  the  services
charge,  to  prices  under  an  identical  delivery  rules.  The  prices  of  the  bidder’s  optional  price  shall  not  be
included in the bid price.
The price proposal of a domestic bidder including the Value Added Tax (VAT) shall be evaluated as it is. On
the other hand, the price proposal of an overseas bidder will be evaluated in accordance with the following
calculation. The sum of P1, P2, P3, P4 and P5 shall be evaluated for the price proposal of an overseas
bidder.

P1 + P2 + P3 + P4 + P5 = evaluation price

(1) P1: Sub-sum (A) in the Table 1.
(2) P2: Customs duties for the P1. This tax rate (8%) is decided in accordance with HSK number

(8468.80-0000) of Deliverable Items and if the P2 can be exempted or reduced in accordance with
any relative regulations, the exempted or reduced amount will be applied for the evaluation.
※An overseas bidder shall submit any documents to prove that the customs duties exemption is applicable.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

(3) P3: Value added tax (VAT) for the sum of P1 and P2. This tax rate is 10% and if the P3 can be

exempted or reduced in accordance with relative regulation, the exempted or reduced amount will
be applied for the evaluation.

(4) P4: Sub-sum (B) in the Table 1.
(5) P5: Value added tax (VAT) for the P4. It is calculated as “P4 x 10%”.

Notwithstanding this Section 13, the Contract price will be Total Price in Table-1 of Section 7.”Price
Requirements”.

14. Contract

The Contract will be effective subject to the KARI's approval thereof and the Appendix A “General
Terms and Conditions” of this RFP is the Contract with the Successful Bidder. All Bidders shall note that
there is no Contract negotiation under this bidding.

15. Language and Measurement Unit

The Proposal, any documents submitted to KARI under the RFP, communication and the Contract
language shall be in English and measurements and quantities shall be in International System of Units.

16. Certificate and Government Approvals

Bidder  shall  receive  any  government  approval  and  certificates  (e.g.  export  licenses)  in  relevant
countries necessary for Bidder's work for  this RFP. Bidder’s ability and plan to get such approval and
certificates  shall  be  submitted  to  KARI,  together  with  any  appropriate  assurance  letters  from  the
relevant governments, in the Proposal. All necessary approvals and certificates for the delivery of FSW
machine  shall be  acquired by Contractor from the  relevant  governments before the  first  payment  in
accordance with the payment schedule of the Contract.

17. Confidentiality

There  shall  be  no  news  releases,  public  announcements,  denials  or  confirmation  in  connection  with
this RFP or Contract award without prior written approval of KARI.

All elements of the RFP shall be kept confidential, and shall not be intentionally disclosed by Bidder to
third  parties.  All  documentation  submitted  in  response  to  this  RFP  shall  be  marked
"COMMERCIALS-IN-CONFIDENCE" on the first page of each document.

All elements of the Proposal will be kept confidential, and will not be intentionally disclosed by KARI to
any third parties

other than any case to meet the purpose of this RFP such as evaluation.

18. Property of Proposal

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

All documents submitted in response to the RFP shall become the property of KARI and will be retained
by KARI.

19. Expenses

Expenses incurred by Bidder in connection with the preparation, submittal, and any subsequent
clarification of Proposal are for their own account and will not be reimbursed by KARI.

20. Governing Law

This RFP and the Contract shall be construed in accordance with and governed by the laws of the
Republic of Korea.

21. Arbitration

Any disputes in relation to, and under the RFP and Contract shall be resolved through arbitration in
Seoul, Korea, under the Rules of the Korean Commercial Arbitration Board (KCAB).

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

“This Page is intentionally left as blank.”

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Appendix A. General Terms and Conditions

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

“This Page is intentionally left as blank.”

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Preamble

This  Contract made  and  entered  into  this on  February                  , 2024  by  and  between  Korea  Aerospace
Research  Institute  (“KARI”),  a  Korean  Government-funded  research  institution,  established  and  operating
under the laws of the Republic of Korea, with its principal office at 169-84 Gwahak-ro, Yuseong-gu, Daejeon,
34133 Korea, and [Name of Contractor] (“Contractor”) established under the law of  [Nationality] with its
principal office at [Address].

Witnesseth

WHEREAS, KARI has undertaken the task of establishment of Satellite EMC Test Equipment.

WHEREAS, KARI would like to procure the Friction Stir Welding (FSW) Machine for the Dome fabrication
of the KSLV-III 1st stage Propellant Tank and desires Contractor to provide the Friction Stir Welding (FSW)
Machine including technical data, technical support and service as needed; and

WHEREAS,  Contractor  is  willing  to  provide  KARI  with  the  Friction  Stir  Welding  (FSW)  Machine  for  the
Dome  fabrication  of  the  KSLV-III  1st  stage  Propellant  Tank  and  necessary  Services  on  the  terms  and
conditions as set forth in this Contract;

NOW, THEREFORE, in consideration of the mutual covenants and premises, both Parties hereto have agreed
to the following:

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Article 1.

Definitions

The terms defined in this Article shall have the meaning described to them herein whenever they are used
in this Contract, unless otherwise clearly indicated by the context.

1.1

“Associates” mean all individual or legal entities organized under public or private law, who shall
act, directly or indirectly, on behalf of KARI or Contractor, or at the direction of either Party to this
Contract to fulfill the obligations undertaken by such Party in this Contract, including, without
limitation, the employees of each Party, their suppliers and Subcontractors.

1.2

“Contract” means this Contract for the procurement of the Friction Stir Welding (FSW) Machine
for the Dome fabrication of the KSLV-III 1st stage Propellant Tank, including Appendices as
attached hereto, and all amendments that may be agreed to by the Parties in accordance with the
terms and conditions of this Contract.

1.3

“Contractor” means [Name of Contractor] as a Party to the Contract.

1.4

“Deliverable Data” means all information and documents related to the Friction Stir Welding
(FSW) Machine required to be delivered by Contractor, at its expense, to KARI as listed in PART 2
“Technical Specifications and Statement of Work” hereof.

1.5

“Deliverable Items” means the Friction Stir Welding (FSW) Machine, software, and Deliverable
Data that Contractor shall deliver to KARI under this Contract and any materials that Contractor
may deliver to KARI on KARI’s request, including any additional data, information and spare parts,
in the course of the provision of the Friction Stir Welding (FSW) Machine.

1.6

“EDC” or “Effective Date of the Contract” means the date identified in Article 17 “Effectiveness of
Contract”.

1.7

“Force  Majeure”  means  any  act  of  God,  war,  act  or  failure  to  act  of  any  government  in  its
sovereign  capacity  except  for  the  export  license,  fire,  flood,  earthquake,  strike,  epidemic,
quarantine,  embargo,  nuclear  incident,  or  any  other  event,  unforeseeable  and  beyond  the
reasonable  control  without  any  fault  by  the  Party  or  its  Subcontractors  relying  upon  the  Force
Majeure.

1.8

“Final-Acceptance Test” means final inspection held at the place designated by KARI after
installation of Deliverable Items in accordance with the Article 10 “Inspection and Acceptance”.

1.9

“Friction  Stir  Welding  (FSW)  Machine”  means  Friction  Stir  Welding  (FSW)  Machine  for  the
Dome  fabrication  of  the  KSLV-III  1st  stage  Propellant  Tank  to  be  provided  and  installed  by
Contractor at the place designated by KARI.

1.10

“KARI” means Korea Aerospace Research Institute as a Party to the Contract.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

1.11

“KARI  Furnished  Item”  means  the  equipment  and/or  facility  listed  in  PART  2  “Technical
Specifications  and  Statement  of  Work”,  which  KARI  shall  provide  to  Contractor  for  the  final
acceptance at the site designated by KARI.

1.12

“Party” or “Parties” means KARI or Contractor, or both, in accordance with the context.

1.13

“Pre-Acceptance Test” means factory inspection held at Contractor’s site before the delivery of
Deliverable Items in accordance with the Article 10 “Inspection and Acceptance”.

1.14

“Service(s)” means all professional services and labor required to be provided including, without
limitation, design, development, manufacture, research, analysis, integration, training,
transportation, installation, test, and warranty.

1.15

“Subcontract” means any subcontract, including purchase orders and all similar forms of
agreements at any tier under this Contract.

1.16

“Subcontractor” means a contractor under any Subcontract, including suppliers and vendors.

1.17

“Third Party” means any individual or legal entity other than the Parties and the Associates.

Article 2.

Contract Documents

2.1

This Contract shall comprise the following documents, as amended from time to time by written
agreement by and between both Parties:

(a) PART 1: General Terms and Conditions
(b) PART 2: Technical Specifications and Statement of Work

2.2

In  the  event  of  any  inconsistency  or  discrepancy  between  or  among  the  Contract  documents  as
listed  in  Article  2.1  above,  the  Contract  documents  shall  be  applied  in  the  decreasing  order  of
precedence.

Article 3.

Scope of Works

3.1

In accordance with the requirements and scopes of work as set forth in this Contract including
PART 2 “Technical Specifications and Statement of Work”, Contractor shall provide the Deliverable
Items.

3.2

After  the  delivery  of  Deliverable  Items,  Contractor  shall,  without  any  additional  charge  to  KARI,
provide  KARI  with  such  technical  data,  documentation  and  information  as  may  be  reasonably
required  by  KARI  to  understand  the  output  of  the  Contractor’s  Service  hereunder.  Provided,
however, that  the Contractor has the right  to refuse  such  data, document  and information if the
Contractor considers it may prejudice the Contractor’s intellectual property right.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

3.3

Contractor  shall  keep  KARI  informed  with  respect  to  the  progress  of  the  Friction  Stir  Welding
(FSW)  Machine, and shall comply with instructions given by KARI, but this instruction should be
mutually agreed in advance.

3.4

During or before the Pre-Acceptance Test or Final Acceptance Test as set forth in Article 10
“Inspection and Acceptance”, the Contractor shall carry out training for operator(s) to be
designated by KARI.

Article 4.

Contract Price

4.1

For the full, satisfactory and timely performance of all obligations by Contractor in accordance with
the provisions of this Contract, KARI shall pay to Contractor the Contract Price of TBD EURO/USD
(EUR/USD TBD) in accordance with the terms of payment as specified in Article 5 “Terms of
Payment”.

4.2

The Contract Price as specified in Article 4.1 above shall be firm and fixed price that is not subject
to any escalation or to any adjustment or revision by reason of the increase of actual costs incurred
by Contractor in the performance of the work under this Contract.

4.3

The Contract Price as specified in Article 4.1 above shall be comprised of the following items;

Description

Price

(EURO/USD)

Deliverable
Item

Friction Stir Welding (FSW) Machine

- Welding software and license keys for welding processes, if

available, including license fee. (submitted on USB)

Deliverable Data listed in PART 2 “Technical Specifications and
Statement of Work”

Service

Post Delivery Support

Total Sum

[Note] the above payment breakdown table may be adjusted by mutual agreement by KARI and Successful
Bidder.

4.4

Contract Price shall include any federal, state or local taxes, funds, stamp duties, fees, transfer taxes,

duties or charges of any kind whatsoever levied or imposed pursuant to related laws on the
payment of the Contract Price under this Contract by the government or any political divisions of
any country except for the customs duties and the value added taxes levied on all Deliverable Items
and any charges for the customs clearance in Korea.

4.5

All banking charges incurred in Korea shall be borne by KARI, and those charges incurred outside
Korea shall be borne by Contractor.

Article 5.

Terms of Payment

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

5.1

Payment Schedule

5.1.1

Payment shall be executed subject to the establishment of performance bond under this Article 7
“Performance Bond”.

5.1.1

The Contract Price as specified in Article 4 “Contract Price” shall be paid in accordance with the
following schedule:

No.

Payment Milestone

Payment Due Date

Percentage (%)

Amount (EURO/USD)

EDC and the establishment of
P-bond (EDC + 1M)

EDC + 2M

PDR (EDC + 4 M)

EDC + 5 M

Completion of Pre-Acceptance
at Contractor’s site
(EDC + 14 M)

EDC + 15 M

Completion of Final Acceptance
at the site designated by KARI
(EDC + 19M)

EDC + 20 M

Total

100

*. EDC means the Effective Date of Contract as per Article 17 “Effective Date of Contract”.

*. PDR means the Preliminary Design Review Meeting.

*. M means calendar month.
[Note] the above payment milestone table may be adjusted by mutual agreement by KARI and Successful
Bidder.

5.2

Billing Procedure

5.2.1

All invoices the Contractor submits for payment shall be in duplicate and received by KARI at least
thirty (30) days before the payment due dates as specified in Article 6.1.2.

5.2.2

All  payments  shall  be  made  in  EURO/U.S  Dollar  by  telegraphic  transfer  to  the  bank  account  as
designated  by  Contractor  in  the  table  below.  And  KARI  shall  remit  the  payment  by  due  date  as
stipulated in Article 6.1 or not later than thirty (30) days after KARI’s receipt of Contractor’s invoice
whichever  becomes  later.  If  Contractor’s  bank  account  information  is  amended,  Contractor  shall
provide the amended information to KARI in writing on issue of its invoice.

Contractor

Contractor’s Bank

Account No. /
IBAN

Bank Address

SWIFT code /
Bank code

5.2.3

Whenever the payment due date falls on Saturday, Sunday, KARI’s non-business day or a Korean
legal holiday, the payment date shall be the following business day.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

5.3

Suspension of Payment

5.3.1

Notwithstanding  any  provisions  of  this  Contract,  if  any  milestone  has  not  been  accomplished  for
any  reasons  attributable  to  Contractor,  KARI  may,  with  an  advance  notice,  suspend  the  payment
which is due for such milestone until KARI and Contractor agree that such delayed milestone has
been accomplished.

5.3.2

In the event of KARI’s suspension of payment under Article 5.3, Contractor shall nevertheless
continue to perform its obligations under this Contract regardless of whether KARI is entitled to
suspend the payment.

5.4

Deduction of Payment

5.4.1

All  losses,  costs,  charges  and  expenses  which  KARI  incurs  or  sustains  by  reason  of  any  act  or
omission  of  the  Contractor  in  the  performance  of  the  Contract  and  any  other  amounts  (e.g.
liquidated  damages)  which  KARI  is  entitled  to  receive  from  Contractor  under  the  terms  of  this
Contract, may be deducted from any payment that may be or become due to Contractor from KARI
provided KARI notifies Contractor of such  losses, costs, charges and expenses in accordance  with
Article 5.4.1 and Contractor has not otherwise cured such losses.

5.4.2 A prior written notice given by KARI accompanied with documents stating the amount of the losses,

costs, charges, expenses and other amounts referred to in Article 5.4.1 shall be prima facie
evidence of the matters stated herein.

Article 6.

Taxes

6.1

In the event taxes are charged in Korea, KARI shall be fully responsible for payment of such taxes.
Contractor shall be fully responsible for the payment of all applicable taxes imposed outside Korea
including any customs duties and charges.

6.2

Neither Party shall be responsible for paying the customs duties, and related taxes, fee, or charges
for the personnel and the personal effects of the other Party.

6.3

The Contractor shall further comply with instructions KARI may issue from time to time in order to
facilitate any exemption or reductions from customs duties and other taxes that might be levied on
KARI and shall impose the same obligations on the Subcontractor.

6.4

With respect to the Post-Delivery Support as set forth in Article 4.3, in case Korean corporation tax
is required to be withheld from amounts paid or payable to Contractor under this Contract (herein
referred  to  as  ‘Applicable  Tax’),  KARI  shall  withhold  the  Applicable  Tax  and  pay  on  behalf  of
Contractor  the  relevant  Korean  taxing  authority  in  accordance  with  applicable  Korean  law  and
international tax treaty between Korea and Contractor’s government.

6.5

In case KARI pay the Applicable Tax on behalf of Contractor, KARI shall forward proof of the
withheld Applicable Tax to the Contractor within ninety (90) days of payment.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Article 7.

Performance Bond

7.1

Contractor shall establish a performance bond within one (1) week after EDC in favor of KARI in the
value of ten percent (10 %) of the Contract Price, in the form of an irrevocable and unconditional
standby letter of credit available by KARI’s draft at sight.

7.2

The entire amount covered by the performance bond shall be payable to KARI on demand together
with KARI’s written statement to the effect:

(a) that there was a default of the Contractor in the performance of the Contract (including

Subcontractor’s default under the Subcontract), or

(b) that any amount KARI is entitled to receive from Contractor has not been paid by Contractor to

KARI through any other means, or

Whenever any amount has been withdrawn by KARI due to the case of (a) or (b) above, the
performance bond shall be replenished.

7.3

The performance bond under this Article shall be issued by a first class international bank
acceptable to KARI. The performance bond shall be drawn in favor of KARI and advised through the
Woori Bank (Daejeon Branch at 29, Munye-ro, Seo-gu, Daejeon, 35241 Korea, Tel: +82-42-488-9704,
Ext. 312 / Fax : +82-505- 003-0759) and available with such bank by presentation and shall remain
valid until the end of the warranty period in accordance with Article 11 “Representations and
Warranties”.

7.4

It is hereby agreed between the Parties that payment from the performance bond under this Article
shall not affect any other of KARI's rights, privileges, interests or remedies under this Contract or the
applicable law.

Article 8.

Delivery

8.1

General

8.1.1

Contractor  agrees  that  delivery  or  provision  of  time  and  place  under  this  Contract,  whether
specifically provided for or not, or in subsequent amendments thereto, are of the essence  of this
Contract.

8.1.2

Contractor shall deliver Deliverable Items in accordance with the defined schedule and method as
set forth in PART 2 “Technical Specifications and Statement of Work”, and the delivery shall be
deemed to have occurred only when the Deliverable Items has been delivered to the place
designated by KARI irrespective of whether or not the Final Acceptance testing is conducted.

8.1.3

Contractor shall bear any charges or costs of whatsoever nature that are incurred in relation to
delivery or provision hereunder until such delivery or provision is duly made under this Contract to
the place designated by KARI.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

8.2

Delivery to KARI

8.2.1

Contractor shall deliver any Deliverable Items under the terms of DPU site designated by KARI
(Delivered at Place in accordance with the Incoterms 2020) in accordance with the delivery
schedule of this Contract and Partial shipment shall not be allowed.

8.2.2

To obtain  import certificate,  Contractor  shall  notify KARI  by e-mail  (address: “mcshin@kari.re.kr”
for  Mr.  Min-Cheol  Shin  and  “yeseulkim@kari.re.kr”  for  Ms.  Ye-Seul  KIM)  fourteen  (14)  calendar
days  prior  to  each  shipment  with  one  (1)  set  of  proforma  invoice  and  packing  list  specifying  the
number of boxes, name of Items, unit price, and size and volume of each container or box  to be
shipped. As soon as each shipment as provided for in this Article is made, Contractor shall send one
(1) copy each of the following shipping documents to KARI by e-mail;

(a) Clean on board vessel bill of lading/or airway bill,
(b) Commercial invoice (including the custom authorization no.)
(c) Packing list with harmonized system codes,
(d) Weight and measurement list,
(e) Contractor's Inspection Report,
(f) Export License, if any, and
(g) Certificate of Origin, if possible.

Article 9.

Delays in Performance

9.1

Excusable Delay

9.1.1

Neither Party shall be responsible to the other Party for any delay in performing its obligations
under this Contract due to any events of Force Majeure.

9.1.2

The Party whose performance of obligations hereunder has been affected by any events of Force
Majeure shall notify the other Party within ten (10) working days thereafter by sending a detailed
statement and sufficient evidence with respect thereto, and promptly of any subsequent change in
the circumstances, if any. The affected Party shall exercise its best efforts under the circumstances
to remove or remedy the events of Force Majeure and the effects thereof and resume full
performance hereof as soon as possible.

9.1.3

Notwithstanding Article 9.1.1 above, any such delay that has not been notified to the other Party
pursuant  to Article  9.1.2 above  shall not  be excused for any reason whatsoever. Notwithstanding
Article  9.1.1  above,  any  delay  of  performance  of  the  affected  Party  falling  due  after  any  delay,
failure  or  incompleteness  in  exercising  the  pertinent  best  efforts  to  remove  or  remedy  the
pertinent  events  of  Force  Majeure  or  the  effects  thereof  pursuant  to  Article  9.1.2  shall  not  be
excused for any reason whatsoever.

9.2

The Party who has received or was entitled to duly receive the notice of events of Force Majeure
under  Article  9.1.2  above  may  suspend  performance  of  its  obligations,  which  shall  be  due
subsequent  to  such  events  of  Force  Majeure,  until  the  other  Party  has  effected  such  delayed
performance to the full extent after and in view of such events of Force Majeure.

Page 24

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

9.3

Non-Excusable Delay

9.3.1

In the event that, unless otherwise excused by virtue of this Contract or the governing or applicable
law, Contactor delays the Final Acceptance Test of the Deliverable Items as stipulated under this
Contract or Final Acceptance is failed as the result of not meeting the requirements of this Contract
at KARI site, Contractor shall pay for liquidated damages to KARI as a result of such delay in
accordance with Article 9.3.2.

9.3.2

Contractor  acknowledges  and  agrees  that  the  timely  completion  of  the  Final  Acceptance  Test  as
stipulated  under  this  Contract  is  essential  to  KARI,  and  that  such  delay  as  provided  for  in  Article
9.3.1 hereof may cause substantial financial loss or damage to KARI’s right, interests and benefit,
which may  not  be  assessable  or  recoverable.  Both Parties  therefore  specifically  agree  that  in  the
event of such loss or damage caused by delay attributable to Contractor, its Subcontractor or any of
its  agents,  Contractor  shall  pay  KARI  as  liquidated  damages  zero  point  zero  seven  five  percent
(0.075%) of Contract Price per delayed day of Final Acceptance starting after agreed grace period of
ten (10) days has elapsed. If such delay does not exceed ten (10) days from the Final Acceptance
due  date,  the  liquidated  damages  for  such  delay  will  be  waived.  In  no  case,  however,  shall  the
aggregated  liquidated  damages  for  the  delayed  Final  Acceptance  exceed  thirty  percent  (30%)  of
the Contract Price; provided, however, that if the liquidated damages calculated by the aggregated
number of days of delay under this Article, excluding those days of delay excused by KARI in writing,
exceed ten percent (10%) of the Contract Price, KARI may terminate this Contract for Contractor’s
breach pursuant to Article 18.2. Notwithstanding the foregoing sentence, if KARI makes decision to
maintain this Contract instead of termination, the liquidated damages shall continually be imposed
up  to  thirty  percent  (30%)  of  the  Contract  Price  and,  on  KARI’s  written  request,  Contractor  shall
establish  the  additional  performance  bond  with  the  amount  corresponding  to  the  liquidated
damages, accordingly. This additional performance bond shall be valid until  the due date of Final
Acceptance as set forth in Article 10 “Inspection and Acceptance”

9.4

This Article shall not affect other remedies, rights, privileges, interests, benefits of KARI under this
Contract or the governing or applicable law. Contractor agrees that any right of KARI under this
Article is not an alternative or substitute to other remedies, rights, privileges, or interests of KARI.

9.5

For the purpose of this Article, any action or omission of Contractor's Subcontractor, agent, or
servant, de facto or de jure, shall be deemed to be Contractor's own.

Article 10.

Inspection and Acceptance

10.1

Pre-Acceptance (Test)

10.1.1 KARI shall have the right to carry out by itself or to appoint another qualified inspector for

inspection of the Friction Stir Welding (FSW) Machine and general progress during the manufacture,
packing and preparation for shipment of the Friction Stir Welding (FSW) Machine.

10.1.2 In the event that KARI desires to dispatch its inspector or its authorized inspector for inspection of

the Friction Stir Welding (FSW) Machine, Contractor shall make due arrangement for free access of
the inspector to Contractor's workshops or Subcontractor's workshops at reasonable time. Each
Party shall bear its own costs related to these inspections.

Page 25

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

10.1.3 KARI shall be entitled to refuse to accept the Friction Stir Welding (FSW) Machine partially or totally

if  the  factory  inspection  (pre-acceptance  test)  as  aforesaid  in  the  Article  10.1  reveals  that  the
Friction  Stir  Welding  (FSW)  Machine  is  not  in  accordance  with  the  Contract  specifications,
requirements or approved detailed descriptions, drawings and/or technical data involved. In such
case,  Contractor  shall  repair,  replace  or  modify,  free  of  charge,  the  Friction  Stir  Welding  (FSW)
Machine  in  question to bring it into conformity with the Contract specifications, requirements or
approved detailed descriptions, drawings and/or technical data, as aforesaid, and shall notify KARI
when the same is ready for new inspection or test which shall be carried out under the same terms
and conditions as the original inspection and pre acceptance test. Such re-inspection is welcomed
by the Contractor, however the cost such as travel and accommodation expenses will be borne by
KARI. The failure of KARI to detect non-conformity with the Contract specifications, requirements
or  detailed  descriptions,  drawings  and/or  technical  data  during  the  inspection  or  test  shall  not
relieve Contractor of any of its obligations under this Contract.

10.2

Final-Acceptance (Test)

10.2.1 KARI shall make the final inspection (Final Acceptance Test) after the Friction Stir Welding

(FSW) Machine is installed at the designated site by KARI at Contractor’s expense according
to the requirements of the inspection and acceptance procedure under this Contract. For the
final inspection, KARI shall provide KARI Furnished Items to Contractor in time. The detailed
schedule of such inspection shall be decided through mutual negotiation by the Parties , if
necessary.

10.2.2 In case of the failure to meet guaranteed operating specifications or if the tests reveal

defective or faulty materials, design and/or workmanship  attributable to Contractor  and/or
its  Subcontractors,  Contractor  shall,  at  its  own  cost  including  airfreight,  insurance,  duties
and  taxes  for  customs  clearance  in  Korea,  promptly  make  all  necessary  redesign,  supply
and/or  workmanship  required  to  remedy  such  faults  or  defects  in  order  to  assure  that  the
Deliverable  Items  are  conformable  to  the  requirements  set  forth  in  this  Contract
specification.  Once  the  defects  have  been  corrected,  the  tests  shall  be  repeated  as  many
times  as  necessary  until  the  design  specifications  as  aforesaid  are  into  conformity.  Costs
incurred in connection with any repeated tests, whether direct or indirect, sh all be borne by
Contractor. If there is any type of rework or extra work not attributable to the Contractor’s failure,
then the cost occurred will be quoted and be borne by KARI.

Article 11.

Representations and Warranties

11.1

Contractor represents and warrants to KARI that:

(a) Contractor shall provide the Deliverable Item and Service in a timely and efficient manner and

in accordance with the-state-of-art engineering and design industry standards and practices;

(b) Each of its employees who are performing the Service shall be qualified and sufficiently

experienced so as to provide the work competently, professionally and efficiently with the
standards and practices as set forth in paragraph (a) above;

defects in workmanship and materials and shall comply with the specifications and
requirements of this Contract;

Page 26

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

(d) Contractor shall have good title to all design, engineering or technical data or documents, and

all material, and the Friction Stir Welding (FSW) Machine provided to KARI, including, but not
limited to, any other Deliverable Items and Deliverable Data, free from any and all claims,
demands, liens and encumbrances on title;

(e) Neither part of the design, engineering or technical data or documents, and all material, and

the Friction Stir Welding (FSW) Machine provided to KARI, including, but not limited to, any
other Deliverable Items and Deliverable Data, when given and in the future, shall be the
subject of any Third Party infringement claim or action; and

(f) The warranty will not cover the damage or failure due to improper operation, lack of

maintenance, unauthorized alteration, normal wear and tear, and abnormal use.

11.2

The warranty period hereof shall be twenty four (24) months from the installation date of the
Friction Stir Welding (FSW) Machine at the designated site by KARI.

11.3

KARI shall notify Contractor and allow Contractor to access to the Friction Stir Welding (FSW)
Machine to assure proper handling and use under the warranty. Any action performed by
Contractor under the terms of this warranty clause will not extend the warranty period.

11.4

Upon the receipt of written notification from KARI that Deliverable Item delivered by Contractor is
defective of non-conforming, Contractor shall, for the period agreed by both Parties, immediately
repair or replace, at Contractor’s expense, such Deliverable Item so as to comply with the above
warranties. The Contractor shall not be entitled to any additional costs incurred or to recover any
damages suffered due to defect in the Deliverable Item or rejection of the Deliverable Item by KARI.

Article 12.

Legal Compliance and Governmental Authorizations

12.1

Contractor  and  its  employees  shall  comply  with  all  applicable  legal  requirements  of  any  place  in
which  any  part  of  the  work  and  Service  under  this  Contract  is  to  be  done  and  with  the  legal
requirements of public, municipal and other  authorities in any way affecting or applicable to any
work and Service performed by Contractor and its employees.

12.2

Unless  otherwise  provided  for  herein,  Contractor  shall,  at  its  own  expense,  obtain  any  permits,
licenses,  approvals  or  certificates  including  any  other  requirements  necessary  for  the  export  of
Deliverable Item and for the performance of the work and Service under the Contract. Contractor
shall perform the work and Service in accordance with the conditions of any applicable permits or
licenses, approvals or certificates.

12.3

No Party shall be responsible in any way for direct or indirect consequences of any violation of law
by the other Party, its Subcontractors or their officers, employees, agents or servants.

12.4

Contractor shall be responsible for obtaining all non-Korean governmental authorizations necessary
for the performance of the Contractor’s obligations hereunder in a timely manner.

Article 13.

Non-Transfer and Use Assurances

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

13.1

In  case  that  any  part  of  the  Deliverable  Items  to  be  provided  to  KARI  by  Contractor  under  this
Contract  are  subject  to  export  control  regimes  of  the  Contractor’s  country  for  the  purpose  of
non-proliferation of dual use articles and technology, KARI hereby assures and certifies that KARI
will use the Deliverable Items and Deliverable Data only for peaceful purposes and, as an end user,
except  as  specifically  authorized  by  prior  written  approval  of  the  relevant  authorities  of  the
Contractor’s country, will not re-export, re-sell or otherwise dispose of the Deliverable Items and
Deliverable Data outside the Republic of Korea or to any Third Party. If requested by Contractor,
KARI  shall  execute  and  issue  to  Contractor  a  non-transfer  and  end  use  certificate  containing  the
said KARI’s assurances.

Article 14.

License and Ownership of Data and Information

14.1

If any license or consent from Contractor or any Third Party is required to ensure KARI’s right in this
Article, Contractor shall grant and shall have such Third Party grant such license and consent to
KARI and KARI’s Associates.

14.2

Subject to Article 14.1 above, Contractor shall retain ownership rights in its prior existing standards,
reference materials, drawings, and engineering tools, used in connection with the Friction Stir
Welding (FSW) Machine under this Contract.

Article 15.

Suits for Infringement

15.1

In the event that any suit, claim, action or proceeding against KARI and its  Associates arises from
allegations  that  any  proprietary  rights  to  be  provided  by  Contractor  hereunder  constitute
infringement  of  any  patent,  copyright,  trade  secret,  know-how, or any  other  proprietary  right of
any Third Party, Contractor shall defend KARI’s and KARI Associates’ right, title and interest to the
same  against  such  suit,  claim,  action, or  proceeding at  Contractor’s  expense  and  shall  hold  KARI
and KARI Associates’ harmless from any damages or losses of any kind including without limitation
legal fees. If as a result of such suit, claim, action or proceeding, the proprietary rights or any part
thereof  is  held  to  constitute  an  infringement  and  the  use  of  said  proprietary  rights,  or  any  part
thereof, is enjoined, Contractor shall promptly, at its option and expense, either procure for KARI
and  KARI’s  Associates  the  right  to  continue  using  said  proprietary  rights,  or  the  part  thereof,  or
replace the same with non-infringing proprietary rights acceptable to KARI and KARI’s Associates.

15.2

The Contractor owns the intellectual property right of the Friction Stir Welding (FSW) Machine
and KARI and KARI’s Associates shall not copy the design or allow any Third Party to copy the
design for any purpose without prior written approval from the Contractor.

Article 16.

Confidentiality

16.1

Each Party agrees to keep secret and confidential all information obtained pursuant to this Contract
from  the  disclosing  Party,  which  is  designated  as  confidential  by  the  disclosing  Party.  The  Parties
agree  to  take  all  necessary  precautions  in  a  manner  acceptable  to  the  Party  furnishing  the
confidential information in order to keep secret and confidential such information and to restrict its
use  outside  and  beyond  the  scope  of  this  Contract;  provided,  however,  that  the  above  shall  not

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

apply  to  information  which  is  or  becomes  part  of  the  public  domain  or  obtained  from  an
independent source through no fault of the disclosing Party, nor shall the above restrict or prohibit
the  disclosure  of  such  information  to  competent  government  authorities  as  is  required  to  bring
about the purposes intended by this Contract.

16.2

Any information derived from KARI’s property in connection with this Contract, shall be kept secret
and confidential and shall not, without the consent in writing of an authorized representatives of
KARI, be published or disclosed to any Third Party, or used by Contractor, except for the purpose of
implementing this Contract.

16.3

The obligations undertaken by the Parties pursuant to this Article 16, shall survive termination of
this Contract and shall remain in effect and be binding on the Parties for a period of five (5) years
after the termination or expiration of this Contract except for such information as shall become
part of the public domain or is received from an independent source through no fault of the Party
wishing to disclose.

16.4

Contractor shall obtain the prior written approval of KARI concerning the content and timing of
news releases, articles, brochures, advertisements, prepared speeches, and other information
releases, proposed to be made by such party concerning this Contract or the work performed or to
be performed hereunder. KARI shall be given a reasonable time to review the proposed text prior
to the date scheduled for its release.

Article 17.

Effectiveness of Contract

17.1

The effective date of this Contract ("EDC") is the date the duly authorized representatives of the
Parties have signed this Contract.

17.2

Any amendment to this Contract shall be effective upon signature by the duly authorized
representatives of both Parties.

Article 18.

Termination

18.1

Termination for Events of Force Majeure

18.1.1 In the event that the excusable delay under Article 9 “Delay in Performance” exceeds three (3)

months for any single Event of Force Majeure or six (6) months in the aggregate for all Events of
Force Majeure, KARI, at its sole discretion, may declare frustration of this Contract, and terminate
the whole or any part of this Contract by sending a seven (7) days prior notice to the Contractor.

18.1.2 In the event that the Contract is terminated for Events of Force Majeure, Contractor shall be

entitled to the payments received and payments due as of the date of termination, in which case
Contractor shall return fifty percent (50%) of the amount paid by KARI under this Contract. KARI
shall return the Deliverable Item to Contractor, and Contractor shall return all of the KARI
furnished items in its original configuration, if any.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

18.2

Termination for Breach

18.2.1 KARI may, by written notice to the Contractor, terminate the whole or any part of the Contract, if

any of the following circumstances occurs;

(a) The Contractor fails to deliver any Deliverable Item under the Contract in accordance with the

delivery schedule, or

(b) The Contractor fails to obtain the export license in accordance with Article 12 “Legal

Compliance and Governmental Authorization”, or

with the Service within the time specified and in accordance with the terms of the Contract, or

(d) The Contractor fails to remedy any or all defects and non-conformity on the Deliverable Item

in accordance with Article 11 “Representations and Warranties”.

18.2.2 In the event of the circumstances in Article 18.2.1, KARI may notify the Contractor and may

suspend any further performance of its obligation under this Contract. If the Contractor fails,
within ten (10) days from the dispatch of the notice, to produce and notify KARI of reasonable
evidence of its intent and ability to effect due performance of the obligation in breach within sixty
(60) days from due dispatch of written notice, then KARI may terminate this Contract with seven
(7) days’ prior notice of termination.

18.2.3 In the event this Contract is terminated for Contractor’s breach, the Contractor shall return all the

amounts paid by KARI under the Contract and also pay same amount covered by performance
bond as a termination charge to KARI. If Contractor fails to pay such termination charge within a
period of one (1) month after termination date, KARI shall call up the performance bond in
accordance with Article 7 “Performance Bond”. In addition, KARI shall return the Deliverable Item
to Contractor, if any and Contractor also shall return all of the KARI Furnished Items in its original
configuration, if any.

18.3

Termination for Special Circumstances

18.3.1 KARI may terminate this Contract anytime upon or after due dispatch of notice of such effect,

without any other conditions, in the event that the Contractor falls within any of the following
categories:

(a) the Contractor has fallen bankrupt or insolvent, or
(b) the Contractor passed a resolution for its reorganization (bankruptcy related), dissolution,

liquidation or winding-up, or

dissolution or winding-up of the Contractor has been applied for by any person and such
application has not been dismissed within sixty (60) days.

18.3.2 If the Contractor is in default pursuant to Article 18.3.1, the Contractor shall immediately inform

KARI thereof. KARI may then terminate the Contract with reasonable prior written notice.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

18.3.3 In the event this Contract is terminated by Article 18.3.1 above, Contractor shall return all amount

paid by KARI under the Contract. The Contractor shall be entitled to keep all of the items procured
and manufactured by Contractor under this Contract as of the date of termination and also shall
return all of the KARI furnished items in its original configuration, if any.

18.4

Termination for Convenience

18.4.1 KARI may terminate this Contract, in whole or in part, at any time for its convenience, upon

reasonable  prior  written  notice  to  Contractor.  In  case  of  such  termination  for  convenience,
Contractor  shall  be  entitled  to  the  payments  received  and  payments  due  as  of  the  date  of
termination, out of the aggregate payments as set forth in the Article 5 “Terms of Payment” hereof.

Article 19.

Resolution of Disputes and Governing Law

19.1

In cases any controversy or claim arises out of or in relation to this Contract or with respect to a
breach hereof, the Parties shall seek to resolve the matter amicably through discussions between
themselves.  In  the  event  of  any  disagreement  between  KARI  and  Contractor  about  the
interpretation of the provisions or definitions used in this Contract, the interpretation of KARI shall
govern  until  and  unless  otherwise  decided  by  arbitration  conducted  pursuant  to  the  following
provisions.

19.2

If the Parties cannot resolve such controversy or claim in accordance with Article 22.1 above, it
shall be finally settled by arbitration under the rules of arbitration of the Korean Commercial
Arbitration Board (KCAB) and the place of arbitration shall be Seoul in Korea. The proceedings shall
be conducted in English. The award rendered by the board shall be final and binding on the Parties
and may be entered in any court of competent jurisdiction for execution.

19.3

The validity, performance, construction, and effect of this Contract shall be governed by the laws of
Korea.

Article 20.

Notice

20.1

All notices, requests, demands, approvals, reports, invoices, and other correspondence to be
provided pursuant to this Contract shall be in writing and shall be deemed to have been duly given
to the Party to be notified;

(a)  on the date of delivery if delivered in person;
(b)  on the date of dispatch if by email or facsimile;
(c)  on the date of receipt if by registered airmail or overnight courier.

All notices shall be addressed to the appropriate Party at its address as follows:

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

a) If to KARI : Korea Aerospace Research Institute

169-84 Gwahak-ro, Yuseong-Gu
Daejeon, 34133 Korea

Technical Matter

Contract Matter

Attn.: Mr. Mincheol Shin
Dep’t: Launch Vehicle Technology

Research Division #1

Tel.:Tel:

Tel.: +82-42-860-2951
Fax: N/A
e-mail : mcshin@kari.re.kr

Attn.: Ms. Ye-Seul KIM
Dep’t: Overseas Contract Office

Tel: +82-42-860-2613
Fax: +82-42-879-4370
e-mail : yeseullim@kari.re.kr

b) If to Contractor : Name of Contractor

Address

Technical Matter

Contract Matter

Attn.: TBD
Dep’t: TBD

Tel.:Tel:

Tel.: TBD
Fax: TBD
e-mail : TBD

Attn.: TBD
Dep’t: TBD

Tel: TBD
Fax: TBD
e-mail : TBD

20.2

Each Party may change its address for notice by notice given to the other Party in the manner set
forth above. Any notices given as provided herein shall be considered effective on the date
delivered in accordance with Article 20.1.

Article 21.

Miscellaneous

21.1

Assignment

This Contract and each and every covenant, term and condition hereof shall be binding upon and
inure to the benefit of the Parties and their respective successors, and neither this Contract nor any
rights and obligations hereunder shall be assignable or delegable directly or indirectly by any Party
without the prior written consent of the other Party, which consent shall not be unreasonably
withheld.

21.2

Language and Units

This  Contract  is executed  in  English  and  all  documents,  drawings,  plans  and  any other  writings  as
well  as  communication  between  the  Parties  shall  be  in  English.  Weight  and  measurement  for
deliverable documentation including Deliverable Data shall be recorded in units of metric system.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

21.3

Entire Agreement

This Contract embodies the entire agreements between both Parties with respect to the subject
matter hereof and supersedes and cancels any and all prior understandings or agreements, oral or
written, in relation hereto, which may exist between the Parties. Neither oral explanation nor oral
information by any of the Parties shall alter the meaning or interpretation of this Contract.

21.4

Amendment

No amendment or change hereof or addition hereto shall be effective or binding on any of the
Parties unless reduced to writing and executed by the respective duly authorized representatives of
each of the Parties.

21.5

Subcontract

Each Party shall be fully responsible for the work of its Subcontractors under this Contract, and such
subcontracting shall not relieve that Party of its obligation under this Contract.

21.6

Headings

The headings and titles in this Contract have been inserted for convenience of reference only and
shall not be deemed a part hereof or affect the construction or interpretation of any provision
hereof.

21.7

Unenforceable Terms

If any term or provision of this Contract shall for any reason be invalid, illegal or unenforceable in
any respect, this Contract shall be interpreted and construed as if such term or provision had never
been included herein. Any remaining part of this Contract shall not be influenced by such
ineffectiveness.

21.8

Non-Waiver

The failure or delay of any Party to require any performance by the other Party of any provision of,
or of any right or obligation under this Contract, shall not constitute a waiver thereof, nor shall such
affect that Party's right to thereafter require performance of such or any other provision, right or
obligation.

21.9

Disclaimer of Agency

This Contract or performance under this Contract shall not be interpreted or deemed to constitute
any Party the agent of the other Party. Neither Party shall have the authority to commit the other
Party or its Subcontractor in any manner or to incur any obligation on behalf of or in the name of
the other Party or its Subcontractor.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

21.10 Limitation of Liability

The  aggregate  liability  of  Contractor  under  this  Contract  for  any  and  all  claims,  losses,  liabilities,
costs,  including  Contractor’s  liability  for  default  under  the  Contract  or  damages  arising  out  of  or
resulting  from  the  Contract  shall  be  limited  to  one  hundred  and  thirty  percent  (130%)  of  the
Contract  Price.  Contractor  shall  not,  under  any  circumstances,  have  any  liability  to  KARI  for  any
indirect,  special,  consequential  and/or  incidental  or  punitive  damages  resulting  from  the
performance,  non-performance  or  bad  performance  of  this  Contract,  including  but  not  limited  to
the loss of profits, the loss of revenues, loss of capital and any other similar loss. However, in case of
Contactor’s act of intentional, gross negligence or willful misconduct, the foregoing sentence shall
not apply for.

21.11 Time Limits

Unless otherwise indicated, any time limits to which this Contract binds Contractor or KARI shall be
counted in calendar days from the day following that of the event marking the start of the time limit,
and shall end on the last day of the period specified. When the last day of a time limit is a Saturday
or Sunday, or a legal holiday in the country in which the particular contractual performance is
required, such time limit shall be extended to the first working day following.

21.12 Change

In the event that any changes during the performance of this Contract, within the general scope of
this  Contract,  which  add  or  delete  Deliverable  Items,  Services,  change  the  method  of  Deliverable
Items, adjust the Contract period or affect any other requirement of the Contract are requested by
either Party, those change requests shall be submitted in writing to the other Party. If such change
causes  an  increase  or  decrease  in  the  Contract  Price,  that  information  shall  be  included  in  the
change  request  or  shall  be  identified  by  the  other  Party  within  thirty  (30)  days  of  receipt  of  the
request for change. The Party receiving the change request shall ask the other Party to discuss the
change request within ten (10) days after receipt of it. Both Parties shall discuss such a matter and
reach an agreement within thirty (30) days from the date of commencement of the discussion. In
the  event  the  both  Parties  reach  an  agreement  on  any  changes  requested  by  either  Party  in  due
time,  then  this  Contract  shall  be  amended,  otherwise  this  Contract  shall  be  performed  as
unchanged.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

IN WITNESS WHEREOF this Contract has been issued in two (2) signed English originals of equivalent
validity, executed on behalf of KARI and the Contractor by their respective persons authorized on that
behalf.

Korea Aerospace Research Institute

Name of Contractor

By : ______________________

Name : Dr. Sang-Ryool LEE

Title : President

By : ______________________

Name :

Title :

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Appendix B. Technical Specification & Statement of Work

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

“This Page is intentionally left as blank.”

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Technical Specification

I. General

The  Friction  Stir  Welding  (FSW)  Machine  is intended for the domes of KSLV-III 1st stage propellent
tanks. Although there  are 4 different  types of domes for the 1st  stage tanks, but  the outer diameter,
radius  and  welding  lines  are  consistent  across  all  of  the  domes.  Approximately  4  to  6  domes  are
expected to be produced annually.

II. Classification of Dome Welding Part

As below figure, The domes have two welding lines. The welding lines are named as (1) center flange
welding (CFW), (2) Y frame welding (YFW)

FIG 2.1 Classification of welding lines

The  center  flange  and  Y  frame  parts  are  manufactured  by  machining.  The  dome  skin  is  produced
through  spin  forming  and  machining.  As  a  result,  all  holes  for  inserting  flanges  prior  to  FSW  can  be
pre-made.

III. Design of Dome

The design of the (1) CFW and (2) YFW are common to all domes. So the diameters and locations of
welding lines are consistent to all domes.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

FIG 2.2 Four (4) Dome type with same welding lines

Only thickness and tail length of Y frame may vary depending on the dome type.
Dome outer Diameter ranges from 3800mm to 4200mm but it is not yet finalized. Therefore, an FSW
machine suitable for 3800mm to 4200mm is required.

The following are current dimensions.

FIG 2. Dimensions of Dome

Name

welding parts

Quantity per

dome

Welding Dia.

[mm]

welding Think. [mm]

(1)CFW

Center Flange (AL2219 T851) +

Skin (AL2219 T62)

1500

4~10

(2)YFW

Skin (AL2219 T62) + Y frame

(AL2219 T851)

3500~3600,

3800~4000

others

(3) Dome assembly Out DIA: 3800 ~ 4200 mm
(4) Dome Assembly Height:

- Dia 3800 : 1100~1350 mm (Two kind of Y frame tail length(6))
- Dia 4200 : 1200~1300 mm (Two kind of Y frame tail length(6))

(5) Dome radius : 2375 ~ 2625 mm

Table 2. dimensions of the dome (November 10, 2023)

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Below is the concept drawing of the Y frame part in case of 3800mm DIA. If the interference is a problem
during welding, minor modifications are possible as your recommendation.

FIG 2.4 Dimensions of Y frame (TBD. May 18, 2023)

IV. Essential Functional Requirement of the Friction Stir Welding (FSW) Machine

The Friction Stir Welding (FSW) Machine must be capable of welding the dome specified above chapter.
The essential functional requirements are as follows.

1. FSW tool: Both Fixed and retractable pin tool (RPT) should be available.

2. Milling function with vacuum suction: The Friction Stir Welding (FSW) Machine should be capable

of milling at both ends of dome skin to adjust the dome skin length. It should also include a suction
system to remove chips during the milling operation.

3. Bolt holes for PAUT (Phased Array Ultrasonic Testing) equipment interface: The Friction Stir

Welding  (FSW)  Machine  must  include  designated  bolt  holes  to  interface  with  the  Phased  Array
Ultrasonic  Testing  (PAUT)  equipment  in  the  future.  The  specific  hole  pattern  will  be  determined
(TBD)

4. Functionality and layout for future side flange welding: The current plan includes welding lines

limited to CFW and YFW of the dome. However, there is a possibility of adding side flange welding
(SFW)  in  the  future  (TBD)  and  KARI  will  procure  additional  fixture.  Therefore,  the  existing  layout
(including  that  welding  machine,  rail,  turn-table)  should  be  adaptable  to  accommodate  potential
SFW.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

FIG 2.5 Side Flange Welding (TBD. Oct. 30, 2023)

5. Monitoring Camera system for welding observation: A monitoring camera system is required to

observe welding operations.

6. Welding test jig for specimen welding: A welding test jig should be included for specimen welding

purposes. The jig must be capable of welding specimens with a minimum length of 500mm

7. Automatic control of the welding variables and Data recording: The system should enable automatic

control of welding variables, including the force and RPM of the tool, RPM of the turntable, and
temperature monitoring etc. Additionally, it should record relevant data during welding processes.

8. Air gun for chips and dust removal: An air gun is necessary for blowing out chips and dust during

welding process.

9. Turntable for installing fixtures : A turntable for welding the dome described above should be

included. The turntable must have sufficient load capacity and Diameter so that it can be operated
with additional fixtures installed in the future.

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Statement of Work

1. Overview

(1)

This Statement of Work (SOW) defines the tasks to be performed by the Contractor to provide

Friction Stir Welding (FSW) Machine. Along with this SOW, the Contractor shall perform all tasks
necessary to completely install and successfully operate Friction Stir Welding (FSW) Machine.

(2)

The main undertakings of the project are to perform the installation, Final Acceptance Test, quality

guarantee and training of Friction Stir Welding (FSW) Machine, etc.

(3)

All the descriptions in this SOW are minimum requirements.

2. Procedures of the Work

The Contract shall be progressed with six (6) steps for Friction Stir Welding (FSW) Machine as
follows:

(1)

Design, manufacture, assembly and integration;

(2)

Factory acceptance test (Pre-Acceptance Test) & safety plan verification;

(3)

Transportation;

(4)

Installation at the place designated by KARI;

(5)

Final Acceptance Test at the place designated by KARI according to test procedure; and

(6)

Training.

3. Scope of Work

The Contractor shall provide the work as follows;

(1) Engineering work of the Friction Stir Welding (FSW) Machine,
(2) Manufacture, assembly and delivery of the Deliverable Items,
(3) Parts and particular instruments necessary to operate the Friction Stir Welding (FSW) Machine,
(4) Installation and Final Acceptance Test at the place designated by KARI,
(5) Contract management, site operation, cooperation with KARI,
(6) Basic principle, operation, warranty, maintenance, repair, safety and training for the Friction Stir

Welding (FSW) Machine,

(7) Provision of relevant information and documents designated as Deliverable Data, and
(8) Other necessary matters required for installing the Friction Stir Welding (FSW) Machine as KARI

Furnished Items.

4. Work Schedule

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

The Contract shall submit the detailed work schedule and specially, the work schedule at KARI site shall
be confirmed by KARI for avoiding overlap with KARI’s other schedules.

The Contractor should have a preliminary meeting for design review with KARI before setting the
schedule about manufacturing and If design change in the middle of manufacturing is required, the
change should be followed by the negotiation with KARI.

5. Training

A. Training for the use of the functions:

During or before final acceptance test, the Contractor should carry out training for operator(s) who
is(are) going to be designated by KARI. Training and verification on delivery of Deliverable Items shall be
provided with more than one (1) week by Contractor’s well experienced engineer. The timing of training
may be adjusted by mutual agreement after Contract.

B. Training for the Production

At the beginning of the production starting, the contractor should provide engineering support for the
production at the plant where machine installed. The Contractor should carry out training for
operator(s) who is(are) going to be designated by KARI. Training and supports for the production should
be provided with more than one (1) week by Contractor’s well experienced engineer. The timing of
training may be adjusted by mutual agreement after Contract.

6. Delivery and Installation

The transportation and installation are responsibility of the Contractor. The Contractor should provide
transportation,  unloading,  unpacking,  and  packing  boxes  disposal.  The  installation  plant  will  be
designated  by  KARI.  However,  the  crane  for  installing  the  equipment  will  be  provided  by  KARI.
Foundation  drawings  and  requirements  for  the  installation  of  the  Friction  Stir  Welding  (FSW)
Machine should be provided within EDC + 3 months.

After  completing  the  installation  by  Contractor,  the  Contractor  shall  perform  the  test  working  of  the
Friction Stir Welding (FSW) Machine (Final Acceptance Test) with KARI’s presence and demonstrate
to KARI that there is no problem on the Friction Stir Welding (FSW) Machine.

7. Acceptance Test for FSW

The  Friction  Stir  Welding  (FSW)  Machine  must  undergo  two  types  of  acceptance  tests:  the
Pre-Acceptance Test and the Final Acceptance Test.

A. Pre-Acceptance Test :

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

Following  the  completion  of  manufacturing,  the  Pre-Acceptance  Test  must  be  conducted  at  the
Contractor’s  plant  before  EDC+14  month.  During  this  test,  the  Contractor  should  demonstrate,  in  the
presence  of  KARI  representatives,  that  the  Friction  Stir  Welding  (FSW)  Machine  meets  the
specifications  and  requirements  under  this  Contract.  The  welding  test  for  AL2219  plate  (provided  by
KARI as KARI Furnished Item) using both fixed and RPT tools should be included at this test and ensuring
compliance with the qualifications outlined in standard EN ISO 25239-4 Clause 6. The test plan should
be submitted and approved at least two (2) months before the test.

B. Final-Acceptance Test:
After  the  Friction  Stir  Welding  (FSW)  Machine  is  installed  at  the  place  designated  by  KARI,
Final-Acceptance Test should be carried out on-site before EDC+ 19 month. The Contractor is responsible
for demonstrating that the proposed specifications are satisfied during this test as well. The welding and
milling  test  must  be  successfully  conducted  with  AL2219  plate  (provided  by  KARI  as  KARI  Furnished
Item). Both tool (fixed and RPT) should be approved in accordance with qualification of the standard EN
ISO 25239-4 Clause 6. The test plan should be provided and approved by the Contractor to KARI at least
two (2) months before the delivery.

The Contractor should provide drawings and technical support necessary for future dome fixture design,
production and installation, if required.

8. Warranty

The Contractor should carry out followings for the warranty of the Deliverable Items after delivery of it;

(1)

The Friction Stir Welding (FSW) Machine shall be warranted for the duration of twenty-four (24)

months from the installation date at the place designated by KARI without any operational faults.

(2)

The warranty covers the replacement of faulty parts, the labor required for repair, traveling cost,

staying cost and all associated necessary costs.

(3)

The Contractor shall submit the written plan for repair within forty-eight (48) hours after the

reception of the notification of fault. The Contractor shall completely finish the repair within thirty
(30) days after the reception of the notification of fault.

(4)

For an urgent service during important production period, the deadline for action is five (5) days

from the  reception of the notification of service. To meet the deadline  of the urgent  service,  KARI
will  notify  the  Contractor  of  the  production  start  date  and  the  period  two  (2)  weeks  before  the
production start date.

9. Deliverable Items

Contractor shall deliver the following hardware, software and documents written in English at EDC + 16
months.

A. Hardware: Friction Stir Welding (FSW) Machine
B. Software: Welding software and license keys for welding processes, if available, including license fee.

(submitted on USB),

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KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole or in

part, without the express prior written approval of KARI.

C. Deliverable Data :

(1) Two (2) hardcopies of final FSW Machine construction drawings;
(2) Two (2) hardcopies of facility drawings related with the installation of the FSW Machine;
(3) Two (2) hardcopies of detailed manual for operation;
(4) Two (2) hardcopies of detailed manual for maintenance;
(5) Two (2) hardcopies of user's detailed manual of the design software for welding process; and
(6) List of spare parts and their suppliers.

10. KARI furnished items

The items below are provide by KARI for successful installation and test. The additional necessary items
can be provided by mutual agreement.

(1) Construction of the foundation conforms to the drawing provide by the contractor including:

A. Reinforcement plate;
B. Anchoring interface between the foundation and the machine;

(2) The Crane for the unloading and installation of the Friction Stir Welding (FSW) Machine;
(3) The lubrication oil for the machine with necessary type and quantities according to the

specification provided by the Contractor;

(4) The test coupons of Aluminum for welding test and milling test;
(5) Necessary utilities and connection cables such as compressed air, electrical power and

communication signals.